During the early years of his administration President Reagan was attempting to sell tax cuts for the rich. The public wasn’t buying this proposal until David Stockman, the White House budget director, suggested that if the rich get more money, the wealth will ‘trickle down’ to the masses, thereby forming a key formula for what is now known as ‘Reaganomics’
The theory sounded like a card trick back in the 1980s, however everyone rich or vying to be rich loved the idea of paying less money to the federal government. According to Wikipedia economist Thomas Sowell argued that written that the actual path of money in a private enterprise economy was quite the opposite of that claimed by people who refer to the trickle-down theory. He noted that money invested in new business ventures is first paid out to employees, suppliers, and contractors. Only some time later, if the business is profitable, does money return to the business owners—but in the absence of a profit motive, which is reduced in the aggregate by a raise in marginal tax rates in the upper tiers, this activity does not occur.
The GOP have fought fiercly to retain the reagan tax cuts, despite budget shortfalls and the creation of a chasm between the very upper class elite and the rest of the population. Jobs have been shipped overseas to rake in more profit and incomes for the lower classes have stagnated to the point where millions are living in wage slavery, while goods cost more and more to pay for the errors of Voodoo Economics.
Mr. David Stockman defended his support for the trickle-down approach by quoting John Kenneth Galbraith’s reference to another failed theory, ‘If you feed the horse enough oats, some will pass through to the road for the sparrows.'”
This political season the GOP will fight to prevent any mention of raising taxes on the rich.
Bernie Sanders, a Democratic candidate for president, will not let them change the subject, because the Vermont Senator knows the difference between ‘trickle down’ and ‘pissed on’.
To see his talk of trickle down economics, please go to the following URL
You’ll get the picture better than the GOP, unless you’re one of them.
And then you’ll think it works.
Sorry to break it to you.
Not really.
